Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II, which was initially published in June 2004, is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face. Advocates of Basel II believe that such an international standard can help protect the international financial system from the types of problems that might arise should a major bank or a series of banks collapse. In practice, Basel II attempts to accomplish this by setting up rigorous risk and capital management requirements designed to ensure that a bank holds capital reserves appropriate to the risk the bank exposes itself to through its lending and investment practices. Generally speaking, these rules mean that the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability.
For more details please refer to http://en.wikipedia.org/wiki/Basel_II
Above is copied from this place only.
There is a main difference between Basel II and Basel III. In Basel III, there is a 4.5% capital buffer to absorb shock. With Basel II, there is no capital buffer.
The term Basel is not an acronym for anything. Basel is a city located in northwestern Switzerland. It is the third largest city in Switzerland.
The Risk Weighted Asset, or RWA, represents the credit risk of a bank. Under Basel II, the bank must hold REAL capital of at least 8% of the RWA.
Formerly, the Basel Committee consisted of representatives from central banks and regulatory authorities of the Group of Ten countries plus Luxembourg and Spain. Since 2009, all of the other G-20 major economies are represented, as well as some other major banking locales such as Hong Kong and Singapore. The Basel Committee is named after the city of Basel, Switzerland. In early publications, the Committee sometimes used the British spelling "Basle" or the French-language spelling "Bâle," names that are sometimes still used in the media. More recently, the Committee has deferred to the predominantly German-speaking population of the region and used the spelling "Basel."
it depends on the will but the norm is about 10% of the total estate
There is a main difference between Basel II and Basel III. In Basel III, there is a 4.5% capital buffer to absorb shock. With Basel II, there is no capital buffer.
Basel I dealt with Capital Requirements for Banks. Basel II deal with Capital Requirements for Banks, Supervisor Review and Regulations, Market Displine. Basel III is same as Basel II with the enhancement of having Capital Buffer upto 4.5% which is not a part of Basel II.
in basel II there is no capital buffer but in basel III buffer is 4.5 % to be achieved upto jan 16 to absorb the shock
Basel II is the second set of recommendations released by Basel Committee on Banking Supervision. These recommendations are directed towards international governments for the purpose of creating a standardized international banking system.
one is 2 and the other is 3
The Basel II was originally published in 2001 to a small segment and was released to the entire population in June 2004. A revised version was published in 2008.
I believe it was the Basel Committee on Banking Supervision who issued Basel 2. It was published in June of 2004. It's objective was to create an international standard for banking regulator to use.
As far as i know tha CAR in the new BASEL II Accord is not 8% it is infact 12 %, i.e the banks are supposed to maintain a higher capital to mitigate future risks.
The main difference is that the Basel I accord mainly focused on capital requirements for banks. The Basel II adds supervision and market discipline to these capital requirement through the "Three Pillar" concept. The first pillar is about capital requirement. The second pillar is about regulation and supervision. The third pillar describes market discipline.
Basel I was an international accord to set minimum levels of capital for banks. It was designed to ensure that lenders were sufficiently well capitalized to protect depositors and the financial system. The first Basel Accord however was replaced by a new accord, Basel II. The new accord was introduced to keep pace with the increased sophistication of lenders' operations and risk management and overcome some of the distortions caused by the lack of risk assessment divisions in Basel I. Basel I required lenders to calculate a minimum level of capital based on a single risk weight for each of a limited number of asset classes, e.g., mortgages, consumer lending, corporate loans, exposures to sovereigns. Basel II goes well beyond this, allowing some lenders to use their own risk measurement models to calculate required regulatory capital whilst seeking to ensure that lenders establish a culture with risk management at the heart of the organization up to the highest managerial level.
Stanley Fisher has written: 'Implications of Basel II for emerging market countries'
the capital is basel-city